ProMASS News Bureau: Mar 5, 2016:
Minister of State for Finance, Jayant Sinha has said that the government is working with RBI to resolve the problem of bad loans, which is going to continue till March next year. Speaking to reporters at New Delhi Friday at the second edition of Gyan Sangam, a meeting of heads of public sector financial institutions, the minister said, out of the total advances of about 69 lakh crore rupees in the banking sector, the stressed assets account for about 8 lakh crore rupees. Mr. Sinha said, the issue of sale of non-core assets of banks will be deliberated upon at the Gyan Sangam.
Non-core assets are assets that are either not essential or simply no longer used in business operations. Mr. Sinha assured that RBI has systemically taken note of stressed assets across both public and private sector banks and noted that banks are in a fairly comfortable position with regard to capital requirements. Sinha said, the government has provided 25,000 crore rupees in the Budget 2016, and added that timely funds will be provided to ensure that the banks are well capitalised.
